On my last post I feel as though I rushed the analysis and missed some important developments. As you can see in yellow there was a clear inverse head and shoulders developing, initially formed by the breakout of the downtrend channel (in black). The left shoulder and head were there, but the right shoulder failed to reach the neckline, resulting in a breakdown of the rally up. We are now clearly in a rising wedge formation, indicated by the blue resistance channels. The rising wedge is a bearish pattern and while typically a reversal, can also be a continuation pattern.
The MACD is in slight bearish divergence which supports the claim of the rising wedge continuation. I want to see how the wedge develops but I have a feeling this will follow the red trendline and result in one final dip before we ultimately begin our bullish ascent. If there is a break to the downside of the wedge formation, I would expect support at the 78.6% Fibonacci Retracement. The Retracement was calculated using the major bull run experienced back in January. This 78.6% level (.00046sat) held as a strong resistance before the January breakout and has since acted as a nice little support, occurring prior to the rising wedge formation began. A drop to the 786 level would coincide nicely with another developing head-and-shoulders pattern. Current levels being the left shoulder, and the retracement being the head. Of course I am now getting ahead of myself.
I want to continue to monitor this but right now I am going to hold off on any trading of VEN until this is clear of the wedge. I have some stored away for the long-term, but for the short term I am out of this one. In the meantime let's see how this puppy rides!
Any and all feedback (including tips) are appreciated!
BTC - 14WRSvZ8uBapqS81WeRwnqmjNJ7iYUR2sD
ETH - 0x88e544d0493EaFb9fEaC33FB4b60A8007435a403
LTC - LW1ixkVoFcwKWPdsZbDhDfHToaMHTs2sr2
The MACD is in slight bearish divergence which supports the claim of the rising wedge continuation. I want to see how the wedge develops but I have a feeling this will follow the red trendline and result in one final dip before we ultimately begin our bullish ascent. If there is a break to the downside of the wedge formation, I would expect support at the 78.6% Fibonacci Retracement. The Retracement was calculated using the major bull run experienced back in January. This 78.6% level (.00046sat) held as a strong resistance before the January breakout and has since acted as a nice little support, occurring prior to the rising wedge formation began. A drop to the 786 level would coincide nicely with another developing head-and-shoulders pattern. Current levels being the left shoulder, and the retracement being the head. Of course I am now getting ahead of myself.
I want to continue to monitor this but right now I am going to hold off on any trading of VEN until this is clear of the wedge. I have some stored away for the long-term, but for the short term I am out of this one. In the meantime let's see how this puppy rides!
Any and all feedback (including tips) are appreciated!
BTC - 14WRSvZ8uBapqS81WeRwnqmjNJ7iYUR2sD
ETH - 0x88e544d0493EaFb9fEaC33FB4b60A8007435a403
LTC - LW1ixkVoFcwKWPdsZbDhDfHToaMHTs2sr2